Operating rates of blast furnaces across Chinese steelmakers dipped 0.25 percentage point on week.

SHANGHAI, Aug 7 (SMM) – Operating rates of blast furnaces at Chinese steelmakers dipped this week, as some mills conducted routine maintenance.

An SMM survey showed that the average operating rate of BFs at steel mills in China lost 0.25 percentage point from the previous week to 90.05% in the week ended August 7, and is likely to extend declines next week as more steelmakers will undertake maintenance.

Operating rates of BFs at Chinese steelmakers

Steel prices strengthened this week amid robust manufacturing Purchasing Managers’ Indexes (PMIs) and environmental restrictions in Tangshan, and spot trades also improved.

The hot weather is unlikely to post disruptions as strong as that caused by heavy rainfalls and floods. In addition, some provinces of China have launched post-floods reconstruction projects, which will also support demand.

SMM expects steel prices to remain firm in the short term, given strong support from surging iron ore prices.

A steelmaker in east China who wrapped up the flood-induced maintenance last week returned to normal production this week, while another mill in the northeast plans to put a BF under maintenance for 40 days starting from August 10, according to the SMM survey.